Boston, MA 05/05/2014 (wallstreetpr) – Graphic Packaging Holding Company (NYSE:GPK) has made its 1Q2014 financial results which show an increase in net sales for the company. For 1Q2014, the company registered a net income of $35.2 million. The earnings per share during this period is $0.11. This financial service on 330.3 million weighted average diluted stocks. During the same quarter in FY 2013, the company registered net income of $34.9 million and earnings per share of $0.10.
Details
The net income 1Q2014 included restructuring and other special charges of $9.3 million, which results from the sale of the label business of the company. The adjusted net income for 1Q2014 was $44.5 million. The earnings per diluted share were $0.13. The adjusted net income for 1Q2013 was $35.8 million, and the earnings per diluted share were $0.10.
Net Sales
Net sales for Graphic Packaging Holding Company (NYSE:GPK) dropped by 2.5% with the number $1.0K million in 1Q2014. During the same quarter in FY 2013, the net sales first $1.1K million. From differently divested businesses, the company received $45.3 million. When adjusted for the divest businesses during the previous period, net sales of Graphic Packaging Holding Company (NYSE:GPK) increased $17.5 million, which is an increase of 1.7%. Such adjusted higher net sales happened due to higher pricing and favourable exchange rates. Higher pricing brought in $18.9 million and favourable exchange rates brought in $1.5 million.
Business on the upswing
The paper and packaging business is on the upswing. Higher prices and consolidation are helping the industry and the business. Prices are going up for White Paper. Also, plant closures due to bad weather was another factor in rising prices. With the ban on lost shopping bags in the U.S., the demand for paper packaging is sure to go up. Los Angeles has already banned plastic shopping bags in different stores. A bill in the state legislature may soon bring in state-wide plastic bag ban. Different other cities already have bans on plastic bags or thinking about that.
